North American Oil and Gas Corp. (OTCBB: NAMG) completed an exhaustive analysis on the recently acquired 3-D survey covering its 3,429 gross acres (2,946 net acres) Tejon Area totals located in the San Joaquin Basin in California.
The company has completed mapping and volumetric analysis of the 14 prospects previously identified, further refining their extent and reducing their associated technical risk. This work has allowed the company to prioritize its prospect inventory in terms of geologic risk, resource potential, drilling difficulty and permitting issues.
The prospects include five target horizons: the Eocene, Vedder, Jv, Olcese, Reserve and Transition Zone. All of these reservoirs are productive at the adjacent Tejon, North Tejon and Wheeler Ridge fields which have together produced over 175 million barrels of oil and gas in oil equivalent terms. The 3-D survey has enhanced our understanding of the oil habitat at Tejon and North Tejon fields which were developed without the aid of this data. The new 3-D interpretation clearly shows traps that were untested in the previous drilling campaigns because they did not have this data to drive their development programs. Most of NAMG's prospects are up-dip of this old production.
Although our P50/P10 resource estimates have remained the same at 24/81 million barrels of oil equivalent (MMBOE), NAMG thinks the technical risk of our prospects has been reduced by our continued analysis. NAMG has started the permitting of five wells.
North American Oil & Gas Corp. is an independent energy company offering oil and gas production services. The company is based in Ventura, Calif.